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2022 (12) TMI 164 - AT - Income TaxTDS u/s 192 - Contribution towards PF - short deduction of TDS - allowability of deduction u/s. 80C(2) of Act for contributions to PF - assessee had failed to deduct TDS on salary payments - contribution towards PF constituted u/s. 61 of the Kerala Co-operative Societies Act 1969 is a statutory PF - as per AO notification/document was produced by Assessee nor any documents were produced to show that PF satisfies the other conditions mentioned in Sec. 80C(2) - HELD THAT:- The assessee has explained before us that on bonafide belief that contribution towards PF maintained by assessee which falls in category of statutory PF as per section 2(e) of PF Act, 1925 and deducted the sum while computing deduction of TDS on salary of the employees that resulted in short deduction of TDS and there was malafide intention. Because of considering the contribution to PF maintained by the assessee, there was wrong estimation of the salary of its employees. That was resulted in short deduction of TDS and in our opinion, the explanation given by the assessee is bonafide. As such, holding the assessee in default u/s. 201(1) of the Act is unwarranted, thereby including provisions of section 201(1) & 201(1A) of the Act is also unwarranted. See MAHATMA GANDHI UNIVERSITY AND (VICE-VERSA) [2019 (5) TMI 1373 - ITAT COCHIN] Thus short deduction of TDS is bonafide and invoking provisions of section 201 of the Act is unjustified - Decided in favour of assessee.
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